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COVID-19 hits Iraqi Labour Market, Enterprises

COVID-19 Dealt Heavy Blows to Iraqi Labour Market, Enterprises in 2020: IOM, FAO, ITC Study

In early April, Iraq surpassed 900,000 COVID-19 cases.

Necessary efforts to contain the spread of the virus throughout 2020 led to a reduction in economic activity; compounded by pre-existing economic challenges, drops in oil prices and the public health COVID-19 crisis, it is estimated that Iraq’s economy contracted by 9.5 per cent in 2020.

To measure losses and investigate how small- and medium-sized enterprises (SMEs) in Iraq are coping with the economic impact of COVID-19, the International Organization for Migration (IOM), the Food and Agriculture Organization (FAO), and the International Trade Center (ITC) conducted a panel study in 2020 on 893 SMEs representing 16 sectors in 15 governorates in Iraq.

The study focused on the food and agriculture sector in order to determine variance in outcomes and effects on these firms when compared to non-agricultural businesses. The primary data used in this study was collected using ITC’s COVID-19 corporate survey.

The new report Panel Study: Impact of COVID-19 on Small- and Medium-Sized Enterprises in Iraq showcases the main findings from three rounds of data collection, covering the effect of border closures and lockdowns on revenue, production, and employment; accessibility of resources or ability to sell products; and mechanisms adopted to cope with the crisis.

Almost all firms in the study reported a decline in production or sales between February 2020, the pre-COVID-19 period, and the end of the year. Firms suffered large losses in revenue early on (an average decline of 67% by June).

Although revenue partially recovered between July and October, it did not reach pre-pandemic levels (firms reported a revenue drop on average of 23% between February and November). SMEs also reported incurring new debt over the year due to the pandemic, primarily through informal means such as borrowing from friends and family.

The labour market also suffered due to COVID-19. On average the number of employees in SMEs reduced by 27 per cent between February and June. By August, employment numbers began to recover but remained below pre-pandemic levels by the end of 2020, with the number of male and female employees, including full- and part-time, decreasing on average by seven per cent between February and November.

Furthermore, the reduction in employment temporarily widened the gender gap in the labour market. In February, there was 1 woman for every 15 men working in the surveyed SMEs. The gap reached 1 woman for every 19 men by August, but then decreased to 1 for 13 in November 2020.

Over the course of the study period, the mechanisms SMEs adopted to cope with the financial difficulties of the pandemic changed. Initially, SMEs laid off employees. Later, requesting leniency in repaying financial responsibilities and increasing marketing efforts emerged as the dominant strategies. In June, more than half of SMEs’ reported being at risk of shutting down permanently (65%). By December, those reporting this risk reduced to less than a third (31%).

The same 893 SMEs were surveyed three times in 2020: 22 June to 7 July, 9 to 18 September, and 29 November to 15 December.

The study was funded by the U.S. Department of State’s Bureau of Population, Refugees, and Migration (PRM) and the European Union.

(Source: UN)

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Complex Impact of COVID-19 on Food Security in Iraq

New report from FAO, IFAD, WFP and the World Bank reveals complex impact of COVID-19 on food security in Iraq

As the COVID-19 pandemic continues to evolve, the Food and Agriculture Organization (FAO), International Fund for Agricultural Development (IFAD), World Food Programme (WFP) and the World Bank have collected and analyzed new data on the impact of the crisis on food security, and made corresponding joint recommendations in the first report of a new regular series, “The Impact of COVID-19 on Food Security in Iraq.”

Many people have been unable to work during the current crisis. Around 4.8 million people (12% of the total population) are using negative coping strategies to meet their food needs, and a large stimulus package will be required to re-start the economy, beyond the current measures to mitigate the impact on households and businesses.

On the other hand, food availability has been stable overall, with above-average cereal production in the 2019/2020 season, and the government of Iraq taking a proactive role to keep the food system open despite lockdowns. Food imports have continued, with global trade largely uninterrupted.

Humanitarian, social protection and development responses have stepped up, both from the government (such as “Minha” – “Grant”) and supporting partners. However, global trends have had a cascading impact on Iraq. The fall in oil prices and the slow recovery of the global oil market have had negative implications for the domestic budget, and may affect the government’s ability to continue to fund social protection programmes and agriculture subsidies.

With assistance from Food Security Cluster partners and the Cash Consortium of Iraq, FAO, IFAD, WFP and the World Bank analyzed food availability and access, with a particular focus on vulnerable populations, and jointly made policy recommendations.

“With initiatives to work towards a regional trade integration framework, create an enabling environment for increasing domestic production, invest in productive infrastructure, enhance social protection and monitor food security, vulnerable households can continue to have access to nutritious food. All possible efforts will be made to support the government of Iraq and implement the proposed recommendations,” said FAO Representative in Iraq Dr Salah El Hajj Hassan, IFAD Representative for Iraq Tarek Ahmed, WFP Iraq Representative Abdirahman Meygag, and World Bank Iraq Representative Ramzi Neman, in a joint statement.

The new publication builds on the partners’ weekly reports on COVID-19 and food security, which launched in April and continue to be released.

Download a copy of the new report at: https://bit.ly/2VDbH3a

(Source: UN)

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FAO, WFP support Sustainable Livelihoods in Iraq

Today on World Food Day, the Food and Agriculture Organization of the United Nations (FAO) and the United Nations World Food Programme (WFP) renewed their commitment to supporting the government of Iraq in ensuring that all Iraqis have food security by 2030, with a focus on nutritious food and sustainable livelihoods.

“World Food Day is when we confirm and work to achieve our commitment towards Zero Hunger. In Iraq, FAO will be further cooperating with WFP to provide capacity development and rural income generation programmes for farmers.

FAO is supporting the rehabilitation of water infrastructure, value chains development, the fishery sector and introducing smart agriculture practices in response to country priorities and climate change impact,” said FAO Representative in Iraq Dr. Salah El Hajj Hassan.

The 2019 Memorandum of Understanding between FAO and WFP fosters closer collaboration on longer-term initiatives. Activities will include restoring irrigation canals, instituting sustainable practices such as planting productive trees, and providing inputs such as seeds and tools.

Through such programmes, vulnerable people will receive an income, can get back to work following displacement due to conflict, and continue to farm and grow their own food.

As well as enhanced nutrition awareness for Iraqi citizens, in the coming year, climate change adaptation will be a priority so that communities are better able to recover from climate-related shocks. FAO and WFP are striving to build social cohesion through collective livelihoods rehabilitation. WFP recently reopened its office in Basra to help coordinate activities next year in the south, where vulnerability and poverty indicators are worst.

“In this rehabilitation phase, FAO and WFP are working on livelihoods projects to bring communities together, and contribute to improving long-term self-sufficiency,” said Abdirahman Meygag, WFP Iraq Representative. “We see our climate change adaptation activities as being crucial for food security and the country’s recovery.”

FAO and WFP will also share expertise on information management and assessments, for evidence-based programming that targets the most vulnerable. Programmes are designed together with the government, for and with communities. The two agencies will also coordinate with partners on livelihoods activities, to maximise income-generating opportunities for those in most need.

(Source: UN)

Posted on

FAO, WFP support Sustainable Livelihoods in Iraq

Today on World Food Day, the Food and Agriculture Organization of the United Nations (FAO) and the United Nations World Food Programme (WFP) renewed their commitment to supporting the government of Iraq in ensuring that all Iraqis have food security by 2030, with a focus on nutritious food and sustainable livelihoods.

“World Food Day is when we confirm and work to achieve our commitment towards Zero Hunger. In Iraq, FAO will be further cooperating with WFP to provide capacity development and rural income generation programmes for farmers.

FAO is supporting the rehabilitation of water infrastructure, value chains development, the fishery sector and introducing smart agriculture practices in response to country priorities and climate change impact,” said FAO Representative in Iraq Dr. Salah El Hajj Hassan.

The 2019 Memorandum of Understanding between FAO and WFP fosters closer collaboration on longer-term initiatives. Activities will include restoring irrigation canals, instituting sustainable practices such as planting productive trees, and providing inputs such as seeds and tools.

Through such programmes, vulnerable people will receive an income, can get back to work following displacement due to conflict, and continue to farm and grow their own food.

As well as enhanced nutrition awareness for Iraqi citizens, in the coming year, climate change adaptation will be a priority so that communities are better able to recover from climate-related shocks. FAO and WFP are striving to build social cohesion through collective livelihoods rehabilitation. WFP recently reopened its office in Basra to help coordinate activities next year in the south, where vulnerability and poverty indicators are worst.

“In this rehabilitation phase, FAO and WFP are working on livelihoods projects to bring communities together, and contribute to improving long-term self-sufficiency,” said Abdirahman Meygag, WFP Iraq Representative. “We see our climate change adaptation activities as being crucial for food security and the country’s recovery.”

FAO and WFP will also share expertise on information management and assessments, for evidence-based programming that targets the most vulnerable. Programmes are designed together with the government, for and with communities. The two agencies will also coordinate with partners on livelihoods activities, to maximise income-generating opportunities for those in most need.

(Source: UN)

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EU Supports Conflict-Affected Iraqi Families

Vulnerable farming families in post-conflict areas in Iraq’s Ninewa plains, west of Mosul, will be able to better withstand shocks thanks to a European Union-funded UN Food and Agriculture Organization (FAO) project that aims to increase household income while building, repairing and maintaining local infrastructure and creating communal and public productive assets.

The €6 million project funded by the Madad Fund – the European Union’s Regional Trust Fund in response to the Syrian crisis – is part of FAO’s Recovery and Resilience Programme. The programme contributes to reducing chronic, or acute food insecurity, malnutrition, poverty, and associated risks and vulnerabilities in Iraq’s agriculture sector.

“The European Union has responded promptly to the very urgent needs of the most vulnerable families that were affected by the conflict in northern parts of Iraq,” said Fadel El-Zubi, FAO Representative in Iraq. “Thanks to the support from the European Union, households will enhance their resilience and ability to cope with shocks by increasing their net earnings,” he said.

Cash-for-work to improve access to water

Through cash-for-work activities, 1 250 households will be able to earn an income, directly benefiting around 7 500 people. Critically, the results of this work will also enable farmers to access water for crop irrigation and livestock, through the rehabilitation and construction of water catchments, roads, river embankments and secondary canals.

“Once these important agricultural assets and irrigation infrastructure are restored, the project will provide water for 70 000 hectares of currently unproductive land that can be used for winter wheat crops, and the spring and autumn vegetable seasons,” El-Zubi said. “This means 30 000 vulnerable farming households (180 000 people) will be able to produce food on their land again.”

Many of the families participating in the cash-for-work component of the project have no other income. Participants include women and other marginalized groups, with the work benefiting the community as well as individuals and families.

FAO’s humanitarian response

As the Government of Iraq moves towards a focus on rehabilitation and recovery, humanitarian needs remain. Under the Humanitarian Response Plan 2018, FAO requires $10.2 million to assist 116 100 people in the areas of livestock, plant pest outbreak control and food security coordination.

Over the longer term, under the Iraq Recovery and Resilience Programme 2018-2019, FAO requires $76 million to assist 1.6 million people by restoring agriculture and water systems and revitalizing communities.

FAO’s focus remains on ensuring rural families have the resources to re-establish and secure their agricultural livelihoods and build their resilience into the future. FAO’s work, in close coordination with the Iraqi government, supports families returning to retaken areas, internally displaced families, host communities and refugees from Syria.

(Source: UN)